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Announcement of Intention to Grant an Increase to Federal Civilian and Military Pay

August 30, 1977

The President announced today that he intends to grant Federal white-collar employees and the military a pay increase so that their salaries will be comparable with salaries paid in the private sector for the same level of work, as required by the Federal Pay Comparability Act.

The President will make a decision on the size and distribution of the pay increase prior to October, when the increase becomes effective.

In making his decision on the size of the pay raise, the President is required by the Federal Pay Comparability Act to consider the recommendations of three separate advisory panels. The President has so far received two of the three necessary recommendations.

One recommendation came from the President's "Pay Agent," which consists of the Secretary of Labor, the Director of the Office of Management and Budget, and the Chairman of the Civil Service Commission, acting jointly. Their recommendation is for a 7.05 percent across the-board pay increase.

A second recommendation came from the Federal Employees Pay Council, a five-member group of Federal employee union leaders. They argued that an 8.8 percent increase was justified this year.

The third recommendation is to be made by the President's Advisory Committee on Federal Pay, an impartial group of private sector experts established by law to advise the President on pay matters. The President has not yet received the recommendation of the Committee.

A total of about 1.4 million white-collar workers and approximately 2 million military personnel will be covered by the President's decision. Blue-collar workers and postal employees have their pay established by separate systems.

The 7.05 percent pay increase recommended by the Pay Agent would cost about $3.4 billion. There is an allowance currently provided in the budget to meet this increase. The 8.8 percent recommended by the Federal Employees Pay Council would cost about $850 million more than the Pay Agent's recommendation.

The Federal Pay Comparability Act provides that the President shall annually adjust the salaries of Federal white-collar workers so that they are comparable with salaries paid in the private sector for the same level of work as measured by a Bureau of Labor Statistics survey. The act also provides that the President may recommend an alternative plan to the Congress by August 31 if he decides that a "national emergency or economic conditions affecting the general welfare" would make the comparability increase inappropriate. The President has concluded that conditions warrant full comparability and he decided not to recommend an alternative plan this year.

Jimmy Carter, Announcement of Intention to Grant an Increase to Federal Civilian and Military Pay Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/244194

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